Exchange-traded funds in both Bitcoin and Ethereum recorded a new wave of outflows, totaling over $1.3 billion over three consecutive days, coinciding with a notable drop in the prices of major cryptocurrencies.
According to Farside Investors data, outflows from spot Bitcoin funds rose on Tuesday to about $523 million, more than four times the figures from Monday. Meanwhile, Ethereum funds recorded a jump from $200 million to $422 million in one day, doubling their losses.
Fidelity leads the outflows
The Fidelity Wise Origin Bitcoin Fund (FBTC) led the outflow drain with $247 million exiting, followed by the Fidelity Ethereum Fund (FETH) which lost $156 million, bringing the total to $403 million in one day.
Grayscale funds also experienced significant losses, with the Grayscale Bitcoin Trust (GBTC) seeing outflows of $116 million, while the Grayscale Ethereum Trust (ETHE) lost about $122 million.
In contrast, the BlackRock iShares Bitcoin Trust (IBIT) recorded no outflows, while the losses for the iShares Ethereum Trust (ETHA) were limited to just $6 million.
The market enters a state of "fear"
On the sentiment front, the Crypto Fear and Greed Index dropped to the "fear" zone, recording 44 points, reflecting increasing caution among investors after a long period of optimism.
Although recent outflows remain limited compared to the massive inflows during 2025, they reveal a change in investor sentiment in parallel with a decline in Bitcoin prices by 8.3% and Ether by 10.8% since the middle of last week.
Analysts' opinions
Ryan Park, an advisor at 21Rates, confirmed that these outflows do not indicate a withdrawal of traditional financing from the crypto market, but rather reflect a natural movement of liquidity between Bitcoin and other markets.
For his part, Eric Balsonas, senior ETF analyst at Bloomberg, noted that Ethereum funds have started to compete strongly with Bitcoin since July, especially with regulatory support and stablecoin legislation.
Balsonas also highlighted the role of BitMine, which has been dubbed the "Ethereum MicroStrategy," after it enlisted renowned analyst Thomas Lee from Fundstrat to manage its Ethereum reserves.
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